To set up a new company in the UK, you must register the company at Companies House. This blog sets out the methods available for registration at Companies House and the requirements and legal obligations during the early days of your company.
How to set up a new company
To set up (incorporate) a new company in the UK, you must apply to Companies House, either online or by completing and posting a paper form.
You can do this yourself or, alternatively, a company formation agent or solicitor can set up a company for you. To help with choosing a method, we have created Comparison of different methods of incorporation.
Whichever method you choose, you will need to:
- choose a name for your company;
- choose a registered office;
- decide whether to have a company secretary;
- choose the directors for your company;
- decide how many shares you will have and who will get them;
- identify any people with significant control over your company;
- approve a memorandum of association for your company; and
- choose articles of association for your company.
See our Q&A for a full list of requirements. Our Starting a company toolkit contains all the documentation and guidance you need to set up a new company from scratch.
How to set up a new company online
You can set up a new company online by completing and submitting an online form. Which form you complete will depend on whether or not you are registering with HMRC at the same time. You are likely to save time by registering with Companies House and HMRC simultaneously. See our Q&A for more detail on this.
The form can be edited, saved and completed in separate visits to the website. Your shareholders will need to verify the contents of the application and your memorandum of association to confirm that the information on the form is correct, that they intend to take shares and incorporate a company, and that the legal requirements for registration have been met.
Once the form has been submitted, it will be reviewed by Companies House which aims to process online applications within two working days. If successfully processed, an email will be sent to you confirming that your new company has been incorporated. In many cases, online applications can be processed within 24 hours but this is not guaranteed.
The application fee for applying online is £12, cheaper than any other method.
For guidance on setting up a new company online, including registration with HMRC, you can use our Step-by-step guidance (online including registration with HMRC) and for guidance on basic incorporation online, you can use our Step-by-step guide to incorporation (online basic incorporation only).
Incorporating a new company using the paper form
You will need to complete the IN01 form and post it or deliver it to Companies House.
To set up a new company by post, you can use the editable pdf version of the IN01 form and either type the relevant information into the form and print it, or print the blank form and complete it by hand. Your shareholders will each need to physically sign both the form and the memorandum of association to confirm that the information on the form is correct, that they intend to take shares and incorporate a company, and that the legal requirements for registration have been met.
The completed form will need to be posted or delivered to the relevant Companies House office as set out on the final page of the form (usually the Cardiff office for companies to be situated in England and Wales). The application will then be processed within eight to ten days.
The application fee for submitting by post is £40.
For detailed guidance on completing the IN01 form, see our Step-by-step guide to incorporation (paper IN01 form) and for a cover letter to accompany your completed form, see our Cover letter to Companies House for paper IN01 form.
Using a company formation agent to set up a new company
An alternative to setting up a new company yourself is to have an agent complete and submit the form on your behalf.
Using this method costs more than completing the form yourself and, in practice, you will still need to provide the same information about your new company. However, the benefit of using a reputable company formation agent is that they have experience dealing with Companies House, so will be able to assist with application issues or any necessary follow-ups. See our Q&A for more detail.
Next steps
Once your new company has been set up, you will receive a certificate of incorporation from Companies House, either via email or by post depending on your method of incorporation.
You should also receive your company authentication code by post at your registered office, usually within a week of your new company being set up. This code will be required for filing documents on the Companies House website. See our Q&A for more detail.
Your new company can start trading from the date of incorporation, as given on your certificate of incorporation.
After your company has been incorporated, there are several strict legal requirements that you need to be aware of, some of which constitute offences if you fail to comply. These include:
- Filing documents at Companies House. For a handy guide, see our Quick guide to company books, records and filing.
- Keeping proper records. For useful templates, see our Company registers.
- Registering for corporation tax, PAYE and VAT.
- Displaying your company’s details.
See our Q&A for further guidance on the initial legal obligations.
Our Starting a company toolkit contains all the documentation and guidance you need to set up a new company from scratch.
The content in this article is up to date at the date of publishing. The information provided is intended only for information purposes, and is not for the purpose of providing legal advice. Sparqa Legal’s Terms of Use apply.
Marion joined Sparqa Legal as a Senior Legal Editor in 2018. She previously worked as a corporate/commercial lawyer for five years at one of New Zealand’s leading law firms, Kensington Swan (now Dentons Kensington Swan), and as an in-house legal consultant for a UK tech company. Marion regularly writes for Sparqa’s blog, contributing across its commercial, IP and health and safety law content.